Since 2020, we started to deal with more and more restrictions related to, stay-at-home orders and anti-epidemic measures.
Because of this situation, many people find relief in social platforms, while others try to maximise and capitalize their occasional jobs or hobbies. With the rediscovered concept of social trading during the Pandemic, traders worldwide have found a way to unify both.
Starting from this etoro review and social trading analysis, we’ll take a peek into this world in order to discover it.
Online Stock Trading & Social Trading
If you’re not familiar about the online trading world, you should know that it can be summed-up to buying and selling assets through the support of internet-based trading platforms.
To access those platforms and financial markets, you’ll need a trading account, which are usually provided by brokers firms. Remember that before signing-up with a broker, you should always check if you’re opening an account with a regulated broker. To do so, be sure they possess all the licenses needed for your region.
Between these regulated brokers though there are excellencies which are renowned internationally for being specialized in certain areas. That’s the case of eToro and its revolutionary concept: Social Trading.
This idea was enhanced for more than 10 years from the famous Tel Aviv based broker, and it integrates most peculiar and important features from both social network and financial market worlds. To realize that, you’ll just need to open the platform and see with your own eyes: everything will remember you as a social platform.
Still, you’ll realize pretty soon that you’re dealing with financial assets.
The eToro’s Influencers: Popular Investors
As it happens for any other social network, there are some users which have more influence than others in the platform. In this case, they’re a figure called Top investors.
This key figure became famous in eToro’s World through a series of successful investments, and are regarded as stars and an example for other traders. Well, literally as an example, because of the other trademark of eToro: the Copy trading.
Thanks to this tool you’ll be able to copy other traders’ portfolios in order to automatically open any operation opened in it until then, and from that moment on in that specific portfolio.
It goes without saying that you and the copied trader must allow this option and that the most copied traders are chosen mostly between Top Investors for obvious reasons. Yet, you should not underestimate this operation and realize that what you’re doing is basically investing in people as an asset. And as for every asset, you should do some research, estimating the risks and, in our opinion, you’d only invest in low risk investors if you’re a novice trader.
How To Practice With A Demo Account
To all of those who are new to the financial markets and social trading, the best way to practice what you learned until now is to open a demo account with eToro.
There are many pros in opening a demo account, starting from the fact of not-committing with the broker by depositing any amount of money. Plus, this may be an important feature for all those traders already committed to other broker services (perhaps unsatisfied traders..) which are attracted by eToro’s many features.
Demo accounts work exactly as a standard account and implements most of the features present in it, the only main difference is that every operation performed with it will use a virtual balance. By doing so, you’ll never risk actual money, and still try every technique you’ll think may profit one day, once made a real deposit.